Argentina resumes natural gas exports to northern Chile

Argentina, on Oct. 1, resumed firm natural gas exports to northern Chile following a 13-year hiatus.

Argentina's Secretary of Energy, Flavia Royón, through X (formerly Twitter), said the country “authorized firm exports until April 2024, totaling 400,000 [cu m/d] to be transported through the NorAndino pipeline from the province of Salta to northern Chile.”

The NorAndino pipeline transports natural gas to northern Chile (Second Region) from northern Argentina. The gas will supply combined-cycle power plants in the Sistema Interconectado del Norte Grande (SING), as well as mining and industrial centers in the area.

Engie’s Chilean subsidiary said natural gas supply contracts were signed in July, allowing for the reinstatement of Argentine natural gas imports into Chile.

"At ENGIE, we believe that natural gas is essential to support the energy transition towards a more efficient matrix. As a group, we provide our infrastructure and expertise to make this a reality, always prioritizing system security," said Rosaline Corinthien, chief executive officer of ENGIE Chile.

The agreement comprises two contracts totaling a daily shipment of 400,000 cu m of gas. The gas supply originates from Austral basin, using infrastructure of Transportadora de Gas del Sur SA and Transportadora de Gas del Norte SA.

Diego Pardow, the Chilean Minister of Energy, noted the importance of energy cooperation with Argentina.

"Enhancing integration and energy cooperation with Argentina has been one of the key goals set by our government. This year, we reactivated technical working groups in hydrocarbons, leading to improved coordination and seamless export permits from Argentina, ensuring year-round coverage. Our ministry remains committed to further strengthening our relationship with our neighboring country and enhancing regional integration."

In mid-September, Argentina authorized uninterrupted natural gas exports to Chile until Dec. 31, 2024.